China’s B2C car-hailing company UCAR announced on October 17 that the company plans a private placement of no more than 196 million shares at 50 yuan to 51 yuan per share to raise no more than RMB 10 billion for the development of its car dealing business. The company said that the placement will be in the form of capital injection and loans.
UCAR estimated that the total expenditure for its auto trade business from 2016 to 2018 will be RMB 12 billion, of which RMB 8.8 billion goes to acquiring vehicles, RMB 2.2 billion will be for operating storefront and RMB 1 billion for marketing. The fund raised in this placement will be cover the expenditure for 2016 and 2017.
UCAR’s car dealing service has been extended to 102 cities in China as of August 2016. In the next three years, the service is expected to cover all the prefectural-level cities in China and there will be 300 to 500 car stores, the company said in its disclosure file. (Translated by Jerry)
